American firm P&G's sales increase 2% to $82 bn in FY23

This organic sales growth was propelled by a significant 9 per cent increase from higher pricing and a 1 per cent rise from a favourable product mix. However, these increments were slightly dented by 3 per cent decline in shipment volumes.

P&G also posted an increase in diluted net earnings per share, climbing 2 per cent to $5.90 versus the prior year. The company's operating cash flow stood at a healthy $16.8 billion, with net earnings reaching $14.7 billion for the fiscal. The corporation achieved an impressive adjusted free cash flow productivity of 95 per cent, P&G said in a press release.

In the fourth quarter (Q4) of fiscal 2023 (FY23), P&G reported a 5 per cent increase in net sales, amounting to $20.6 billion compared to the previous year. Organic sales, rising by 8 per cent, were significantly driven by a 7 per cent rise from higher pricing and a 2 per cent increase from a favourable mix.

The firm's diluted net earnings per share grew by a notable 13 per cent to $1.37 in Q4 FY23, compared to the prior year, with an operating cash flow of $5.3 billion and net earnings of $3.4 billion. P&G surpassed expectations with its adjusted free cash flow productivity, reaching a substantial 136 per cent.

P&G's various business segments demonstrated robust organic sales growth in Q4 FY23. The health care segment saw a 5 per cent rise, while the fabric and home care segment observed an 8 per cent increase.

In the baby, feminine, and family care segment, there was a significant 9 per cent organic sales increase compared to the previous year.

The corporation also witnessed a noteworthy gross margin growth in Q4 FY23, increasing 380 basis points versus the prior year, or 450 basis points on a currency-neutral basis, the release added.

However, selling, general and administrative expenses as a percentage of sales increased 190 basis points in Q4 FY23 compared to the previous year, while operating margin for the quarter grew by 190 basis points. On a currency-neutral basis, these increases were 140 and 310 basis points, respectively.

“The April-June quarter provided a very strong finish to fiscal 2023—top-line growth, bottom-line growth, and cash generation,” said Jon Moeller, chairman of the board, president, and chief executive officer. “The team met or exceeded our going-in plans for sales, earnings, and cash in a difficult operating environment and despite significant cost headwinds. As we look forward to fiscal 2024, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity—each in-line with our long-term growth algorithm, despite continued macroeconomic and geopolitical challenges.”

Fibre2Fashion News Desk (DP)